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OCR for page 29
APPENDIX A
M-83 -4
EXECL1TIVE OFFICE OF THE: PRESIDENT
OFFICE OF MANAC;EMENS AND BUDS
WAS~INGt~, D.C. ~
01~ 2 6 1082
NOTANDUM TO CADS OF EXI:CUTIV=~ DE:PART=NTS AND AGI:NCIES
P ROM: David A . Stoc3cman4~C
SUBJECT: OMI3 Circular No. A-ll9' Federal Participation in
the Development and Use of Voluntary Standards
which
ana us ing
Also attached
Attached, for your implementa~cion, is a revision to OMB
Circular No. A-119 which provides guidance to agencies in
working with, and using the products of, private sector
standards organizations. The effect of this revision is to
eliminate the costly, unnecessary, and burdensome aspects of
the Circular, while continuing to encourage agency partici-
pation in the de`7elop~nent of private sector standards.
the products
The effect of
for your information and use is a letter, dated
June 22, 1982, from the Department of Justice, which provides
guidance in ache implementation of the Circular -- particularly
as it relates to working with private sector groups to develop
needed standards.
At tachmen ts
29
OCR for page 30
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGE
WASHINGTON, O.C. ~
0CT 2 ~ 1882
CIRCIJI~AR NO. A-119
R3WI SE:D
Trans~r.ittal Memorandum No.
TO '1-~ E~:=S OF -=XECtJTIVE: DEPAR1~S AND ESTABLI STUNTS
SUBJECT: Federal Participation in the Development and Use of
Voluntary Standards
~ ~ Purpose . hi s Circular establishes policy to be followed by
executive agencies in wor}
OCR for page 31
bureau, office, agency' Gave~ment-owned or controlled
co~ra~on ar ether establi~t af Else Federal - Government,
including re—Try co~sa~ion Or Carat It drew =ot I3CiU~
He legislative or I brunches af ~ Fevers Government.
b. St;us~ means a prescribed set of rules., co~i~ons, or
re~e=ts concerned w~= He definition of terms,
class2fica~ors af cants; de=neat~= Qua procedures;
spec~fica=~n of one Its p.~or3~ce' design, or
operation, mea~es~ent at qualms ~ City su describing
materzaiis, products. systems, service. car practices' or
description of fit and measurement of ~zc.
c. Flu* st=-darde are es~c01~h" generally by pr2~;`te
sector Cues ~4 are ava$101e for use by ~y person or
org=~zati.as`, private car go~e~-eal. He te~ suclucles what
are company referred to a- Pigsty ~:andards- an well as
nconse~s stanzas., ~:t does not Occlude pr=fess~Q~
a~2dards of persona Chuck, It bred cues of etch as,
private shards of Irene— firms, or Cards mandate t:sy
[aw, SuC~ aS muse CO=taz~ IU the 0~: - S0tas ]?~macopeia
~d Else Nat FoD:lary, ae referent in 21 O.S.C 351
d. G~a~ent standards include i All ~c~1 agency standards
, —
and specif~ca=~ns as well as Eed~l ~ Mild tar F Chards mnd
spec=£=ca~tio~.
e. ~Jaluntarv stanza - a }hues are prince sear domestic or
~-
mul~=or~ off z8~ns —— sU0 as no—refit o~zations,
try ~sQciatiQr2s, pr=£es~c,=;4 ~ te~caL societies,
institutes, or group-, Act r~agn~zs~ toast la}'orator~e -- that
plan, devel—, es-,abi~^, Or Coordinate try 5ta~ar~s.
f. St~d~-cievelouzn~ Froths are co~=ees, boards, or
~-
~y other pr~pal '=bdi~aions af vol,:~tary sta"dards b~ies'
es-~s}:ect by such Keyes for the purpose of developing~
reds, ar reviewing standards, ~ Waco are both }:' y the
procedures car =~se brief.
g. Acloutio~s means the spasm at ~ latest: Edison of a
voluntary standard in Bale, ~ part, ar }fly reference for
procurement proses ah he inclusion A he latest edition of a
Voluntary 5~0 I" wholes ~ part' or by reference in
regulation t a) .
h. Se~ret;.rv mess he Siecretasy I Commerce
Secretary s designee.
Ala. A-~9
31
or that
OCR for page 32
6. Policy. It is the policy of the Federal Government in its
procurement and regulatory activities to:
a. Rely on voluntary standards, both domestic and
international, whenever feasible and consistent wi h law and
regulation pursuant to law;
b. Participate in voluntary standards bodies when such
participation is in the public interest and is compatible with
agencies' missions, authorities, priorities, and budget
resources; and
c. Coordinate agency participation in voluntary standards
bodies so that (1) -~he most effective use is made of agency
resources and representatives; and (2) the views expressed by
such representatives are in the public interest arc, as a
minimum, do not conflict with the interests and established views
of the agencies.
7. Policy Guidelines. In implementing the policy established by
this Circular, agencies should recognize the positive
contribution of standards development and related activities.
When properly conducted, standards development can increase
productivity and efficiency in industry, expand opportunities for
international trade, conserve resources, and improve health and
safety. I t also must be recognized, however, that these
activities, if improperly conducted, can suppress free and fair
competition, impede innovation and technical progress, exclude
safer and less expensive products, or otherwise adversely affect
trade, commerce, health, or safety. Full account shall be taken
of Eve impact on the economy, applicable Federal laws, policies,
and national objectives, including, for example, laws and
regulations relating to antitrust, national security, small
business, product safety, environment, technological development,
and conflicts of interest. It should also be noted, however,
that the provisions of this Circular are intended for internal
management purposes only and are not intended to (1) create relay
in =he administrative process, (2) provide new grounds for
judicial review, or (3) create legal rights enforceable against
agencies or their officers. The following policy -delves are
provided to assist and govern implementation of the policy
enunciated in paragraph 5.
a.
Reliance on voluntary Standards.
(1) Voluntary standards that will serve agencies'
purposes and are consistent with applicable laws and regulations
(No. A-119)
32
OCR for page 33
should be acoptec! anc used by Federal agencies in ~he ~.terests
of great er economy ar^d eff ciency, unless they are specifica' ly
prohib~ ~ ed by ~ aw f -om do ing so .
~ 2 ~ Voluntary standards should be given preference ove_
non-manciatory Goverrunent standards un~ ess use of such vo luntary
standarcis would act~ersely af~ect performance or cost, recluce
competi ~i on, o r ha~re other s i gni fi c ant di sadvantages . Ager~c ~ e s
responsible for developing Government standards should revi ew
their existi;~g standarcis at least every five years and cance:
=hose for which an ade~uate and appropriat. ~roluntary standard
can be substituted.
~ 3 ~ In adopting and using ~ro inutary star^da-ds,
preference shou, ~ be ~,en to those baseci on performance cr ter' a
when such criteri a may reasonably be useci in lieu of des ~ gn,
material, or construction criteria.
~ 4) Voluntary standards adopted by Federal agencies
should be referenced, along with their aetes of issuance anci
sources of a~railability, in appropriate publications, regulatory
o rders, and re ~ atec! in-house documents . Such adopt) on should
t eke i nto ac c our~t the requ i r ement s o f c op yr i ght and o the r s ~mi i ar
restrictic~ns.
~ 5 ~ Asencies shouici r~ot be inhibited, if vit-hin tt.2i'
statu ~o ry aut:~ho ri ti e s, f rom de,Je l oping ~ and u s ing G<~ve rnmen~
standards in the e~rent that vo luntary stanciards bodies cannot or
clo not de~relop a ne^ded, acceptable standard in a timely fashior-.
Nor should the policy contained in t"his Circular be construed to
commit any agency to the use o~ a voluntary standard which, a-ter
due consideration, is, in its opinion, inadequate, does not ;neet
statutory criteri a, or i s otherwi se inappropri ate .
b. Partici~ation in \?oluntarY St~nciards Bodies.
Participation by knowledgeable agency employees ~-
~he stand~rds activities of voluntary standards DO~'. es and
standards-aeveloping groups should be actively e~.couragec and
promoted by ager~cy ofCicials when consistent wi-~h -~he provisions
of paragraph 6~.
(2 ~ Agency e~nployees w~o, at Government expense,
part~ ci?ate in s~anda-ds activi~ies of voluntary standards bod~ es
and s~andards-cieveloping groups should do so as specifica~ly
au-hor~ zeci agency rerresentatives.
(No. A-119 )
33
OCR for page 34
~ 3 ~ Agency parti c i pati on in vo l untary stand ard s both e s
and standards-de''eloping groups does not, of itself, conno ~ ~
agency agreement wi tic, or endorsement of, deci si one reached by
such bodies and groups or of s standards approved and published by
vo luntary standards bodi e s .
~ 4) Participation by agency representatives should be
aimed at contributing to the development 0 f vo luntary stanciaras
that will eliminate the necessity for development or maintenance
of separate Government standards.
~ 5 ~ Agency representatives serving as members of
standards -deve ~ aping groups should parti cipate acts ire ~ y and on a
basis of equality winch priorate sector representat~ ves. In doing
so, agency representatives should not seek to dominate such
group s . Active parti cipati on i s intended to inc lude 'ul ~
irt~o'vement in discussions and technical ciebates, registering o'
opinions and, if selected, serving as chairpersons or in other
official capacities . Agency representatives may vote, in
accordance wi th the procedures of the vo luntary standards body,
at each stage of standards development, unless specifically
prohibi ted from cloing so by law or their agencies .
~ 6 ~ The number of individual agency participants in a
giver. vo luntary standards active ty should be kept to he minimum
required for effective presentation of the various program,
technical, or other concerns of Federal agencies.
~ 7 ~ Lee providing of Agency support to a voluntary
standarcis activity shouic! be limited to that which is clearly i;:
furtheranc e 0 f an agency ' s mi s si on and" re spons ibi li ty . Norma ~ i y,
the total amount of Fec~eral support should be no greater t-han
that of se' private sector participants ire that activity except
when it is in the direct and predominant interest of tile
Government to Deere fop a stanciard or Levi si on thereto and its
development appears unliXe' y in the absence of such support. T~.e
form of agency support, s~j ect to legal and budgetary authority,
may zinc dude:
(a) Direct financial support; e. g., grants,
sus gaining memberships, anc! contracts;
(b) Administrative support; e. g., trade: costs,
hosting of meetings, and secretary al functions;
(No. A-~19
34
OCR for page 35
(c) Technical support; e.g., cooperative testing
for standards evaluation arid participation of agency persorme' in
the activi ties of standards-developing groups; and
(~) Joint planning with voluntary stewards bodies
to facilitate a coordinates! effort in identifying and developing
needed standards.
~ E3 ~ Participation by agency representatives in the
policymaking process of voluntary standards bodies, in accordance
with the procedures of Chose bodies, is encouraged --
particularly in matters such as es tarnishing priorities,
developing procedures for preparing, reviewing, a2:c1 approving
standards, and creating standards-de~reloping groups. In order to
maintain Ache private, nongovernmental nature of such bodies,
nowe~rer, agency representatives should refrain from
decisionma3
OCR for page 36
con. ained herein ~
by al ~ aff ected
considered; and
That mechanism shall provide for participation
agenc i e s and ensure hat =ei ~ Hi ewe are
(3) Report to the Office of Management and Budget
concerning implementation of this Circular.
b. Lee heads of agencies concerned winch standards will:
(1) Implement the policy in paragraph 6 of this Circular
in accordance with the policy guidelines i2: paragraph 7 we t-hin
120 days of issuance; ,
( 2 ) Estab ~ i sh procedure s to erasure that agency
representatives participa~cing in voluntary standards bodies and
standards-developing groups wi 11, to the extent pa ssible,
ascertain the views of the agency on matters of paramount
interest and will, as a minimum, express views that are not
inc onsi stent o r in cony li at wi ~ e stab li shed agency hi ews;
(3) Endeavor, when two or more agencies participate in a
given vo lurltary standards body or standards-de~reloping. group, to
coordinate their views on matters of paramount importance so as
to present, whenever feasible, a single, unified position.
~ 4) Cooperate with the Secretary in carrying out his
responsibilities under Tunis Circular; and
(5) Consult with the Secretary, as necessary, in Ate
development and issuance of, internal agency procedures and
guidance implementing this Ci ran l ar ~ and submi ~ J in response to
the request of the Secretary, summary reports on the status of
agency interaction with voluntary standards bodies.
9. Reporting Retirements. Three years from -~he date . of
issuance of this Circular, and each bird year thereafter, the
Secretary wi ll submit to the Office of Management and Budget a
bri ef, summary report on the status of agency interact) on wi th
voluntary standards bodies . As a minimum, the report wi ll
include Ache following information:
a. Lee nature and extent of agency participation in the
development and utilization of voluntary standards; and
b. An evaluation of he effectiveness of the policy
promulgated in =0 s Circular and recomsnendati ons for change .
(No. A-9
36
OCR for page 37
100 Po l: cut Review. The policy contained in this Ctra:~= ball be
reviewed for effectiveness by =e Office of Management and Budget
- -~e years fro. be date of i.88U~C.o'
il. Inauiries. For if cos~cen~sts t~4 s Circular, contact
=e Off~ca oaf! Management and Budget, Office of Federal
Procurement Policy, telephone 2~27395-720?.
W/'~
Director
(No. A-119 )
37
OCR for page 38
~-
V.S. Ocparsment of Justice
Antitn~st Div~on
Of Ale of ran ~ ester ~ pro G - I W - narrow O. C. 20530
JON 2 ~ 1982
Mr. Donald E. Sowle
Administrator for Federal
. . .. .
Pr ocu: emen. Pol i cy
Of f i ce of Management and Budget
Washington, D . C . 20 50 3
Dear Mr . Sow1 e:
. am writing to express the views of the Department of
Justice on competition policy issues raised by the Revised OMB
Circular No. A-ll9, ·Pederal participation in the Development
and Use of i: Voluntary Standards. published 'or comment in the
Pederal Register on Apr il 2O, 1982 ( 47 Fed. Reg. 16, 919 J .
In our comments on previous drafts of the Ci Ocular, dated
December 26, 1916 and June is, 1978, we have supported a policy
of federal adoption of privately developed standards when
appropriate. Through part icipation in, and support for, private
standards making activities, agencies may benefit greatly from
private expertise and will avoid the wasteful dupl iced ion of
cost and effort involved in developing their own in-house
standards. The Department of ~ ustice is not opposed to the
policy annour~ced in Revised OMB Circular A-~}9, which would
eliminate the rigid · due process. precondi~ ion to federal
participation in private standards activities. Such a
precondition is overly restrictive, since as a practice' spatter
federal agencies will often be required to adopt the standards
developed regardless of federal participation in their
development . Thus, in our view, the better solution is to
participate in standards setting bodies and work within them to
assure that appropr late procedu. es are adopted ~
The Department bel ieves that federal participants should
encourage the adoption of procedur es to foster access to
standard setting ac"i vi t i es and t r ansPa rencY i n such
activities. Such procedures facilitate the development of
standards acceptable to the entire affected industry as well as
to consumers. In particular, notice and opportunity for comment
help assure that standards will be based on adequate information
as to their utility and consequences. Moreover, it is
especially important that performance criteria be given a
prominent, perhaps predominate, place in any standards
activity. Federal agency representatives, therefore, should
advocate, as strongly as possible, procedures designed to assure
that ~ broad range of information ~ s solicited, an- that
performance criteria are central element. of the resulting
so andards .
In addition to the practical advantages of open standards
proceedings, such. safeguards would mit~qa~e the Substantial
anticompetitive potential inherent in private standards groups..
The importance of assuring adeciu~-e consideration of com.?et:-ion
in the work of private standards bodies was noted recently by
the Supreme Court in American Societv of Mechanical cncineers'
Inc. v. ~dy~rolevel Coro. Eve case involved a product standard
-
whic.h had been ado~ted i.n 46 states and ail but one of the
Canadian provinces . We Court observed that organ.2at ions
creating such standards could be arise with opportunities for
anticompeti-:ve activity. ~ Federal agencies ought to stro.~ls'y
encourage these private groups to ensure considered ion of ail
relevant viewpoints and interests inc. uding those of consumers,
and potential or existing indust.v participants.
38
OCR for page 39
This country's international obligations and policy, as
expressed in -he Standards Code negotiated during the Tokyo
Round of the Multilateral Trade Negotiations, see the Agreement
on Technical Barriers to Trade, codified at 19 U.S.C.A. 2S31 et
sec. ( 1980 ), provide anoebe- important reason for federal agency
participants to encourage the adoption of open procedures for
priorate standards groups. Shis Code, approved by Congress as
well as by our leading trading partners, seeks to prevent the
creation of product standards which discriminate against import
competition. St requires central governmental bodies to provide
notice end opportunity to comment in the it own standards maksog
activities, and encourages qo~rernments to take reasonable
measures to ensure that non-governmetal bodies provide similar
protection. Sphere the federal government is in f act involved in
the private group, the obligations of the Standards Code would
appear even stronger . Open procedures, specif locally adequate
notice and opportunity to cogent, would further the ob jectives
of the Standards Code, and would substantially reduce the
possibility that discriminatory, anticompetitive standards will
be developed.
The Circular would encourage use of voluntary standards f or
regulatory and other purposes. Although we applaud thus
expansion of the scope of the Circular, we believe that
broadened federal use of pr ivately developed standards should be
accompanied with broad federal awareness of the practical and
competitive advantages of industry-wide access to private
standards bodies. Such access is an asset to federal
participation in private standards activities, but it is also of
great importance when federal agencies, without participation in
the process, merely adopt standards for procurement or
egul story use .
As we indicated in our previous comments, private activity
is not, by virtue of governmental participation or approval,
shielded from the ant~t:ust laws. Federal agency participation
in ~ standards body, however, may imply federal approval of the
process and of the resulting standard, and perhaps lead p: ivate
participants to become lax in their own anti~crust scrutiny. To
dispel any false impressions, federal agency representatives
should inform private participants that federal participation
does not remove antitrust concerns, as well as advocate that
appropriate procedures be employed in the standards proceedings.
Sincerely yours,
Ronald G. Carr
Acting Assistant Attorney Gener ~1
Antitrust Division
39
OCR for page 40
4!~96 Feteral R—stcr / Cot. 47. tYo. 211 / Bonnily. November 1. 1962 / tYc~tic~
OFFICE OF IdANAGE1dENT ADO
RU==
issuance of Clrcular Mc, A-110
"federal Pa~kipation in me
Development and Use of Vodunta~
Standards.
agency: Office of!.tanagement and
Budget.
McCoy: Final Issuance of 0.~1B Circular
.N'a. A-119. Federal Participation in the
Development and Use of Voluntary'
Star.dards.
. .
Queasy: This ORB Circular provides
policy and administrative guidance to
Federal agencies on using voluntary
standards for procurement and
regulatory purposes. on participating
with private sector organizations to
develop such standards. and
coordinating Executive Branch
participation in the development of
voluntary standards. Implementation of
this Circular is expected to result in
reduced costs to the Go~res~nment in
developing and maintaining standards
for produces systems and Se - !C8S.
EF7E~YE Dam This Circular. which
supersedes ORB Circular No. A-119
dated January 1~.1980. is effective upon
publication.
FOR ~ 1
David F. Balcer. Office of Federal
Procurement Policy. Office of
Management and Budget. Washington,
DC 20503 (2021395~72137.
U'~£~Tan, '~fo~anoa: On April
21. S982. tl~e Office of Management and
Budget published a draft Circular.
~ub~cet as above. for a ~day period of
public and agency comment. Comments
were rewired from more than 120
individuals and organizations. including
Federal agencies. business fiend.
industry associations, professional
groups and private citizens.
There follows a summary of the ma for
comments grouped by subject and a
response to each including a brief
description of changes made as a result
of the comments. Many other changes of
a less significant character were made
to increase clarity. simplicity. precision
and reducibility. and to reduce the
burdens of compliance as much as
possible.
.~. Procedural Critena Impased on
Standards Developed
Com.'nent: Several commenters
objected to ORB s deletion of specific
procedural criteria which the previous
version of the Circular imposed on
`.,oluntar, standards bodies as a
precondition to Federal participation.
They argued that such criter~a-
intended to increase public participation
and openness would help to minimize
the potential for anti-tnsst activities.
Other commenters suggested the t while
such procedures should not be
mandatorily imposed. OMB should
instinct agencies to encourage private
standards developers to follow such
procedure.
Response: With regard to tise
inciusson of procedural criteria and their
mandatory smpositian on standard
teveIopers. we have concluded that
imposition of the mandatory procedures
contained in the previous edition of the
Circular is inappropriate. burdensome
and costly and that the question of
imposing such mtena is peripheral to
the fundamental aims of the Circular.
We do agree that. as with any human
endeavor, the voluntary standards
development process is vulnerable to
abuse. Consequently. we have cautioned
Federal agencies to beware of such
potential (Pare. 7). We have also
provided guidance to agencies in the
form of a letter from the Department of
Justice da ted June 22~1982. which
discusses suggested agency approaches
to the question of public participation in
private sector standards development.
40
S- ~~ - A~
Comment: Some commented
suggested that the Circular should be
limited to procurement applications. and
that Federal agendas should not be
require to use voluntary standards for
regulatory purposes. ~me commentere
suggested. in addition. that the Circadian
should not apply to ' 'dependent
regulatory agencies'.
Response: We believe the benefits to
be derived from the procurement use of
standards are equally valid for
regulatory application~particulariy the
benefits of assunng private sector input
into Federal regulatory activities while
reducing the potential for duplicating
existing. adequate voluntary standards
with Govemment standards. With
regard to the second concur:. the
Circular does not "require Federal
agencies to use voluntary standards for
regulatory purposes. It establishes a
policy preferenes in that regard but
leaves to the agencies. themselves. the
decision as to whether to adopt a given
voluntary standard for ~ specific Federal
regulatory purpose. (The legal
requirements associated with such
adoption. Such as those of the
Admini~trat',re Procedures Act. will. of
course. continue to apply.) We believe
such an approach is entire!, appropriate
with respect to independent reguia tom
agencies as win the rest of the
Exe~t',re Branch.
C Role of the I~partment of ~e~
Comment: Several commented
objected to the xqu~rements that the
Department of Commerce maintain
listings of (1) voluntary and Govemment
standards. (21 voluntary standards
bodies. and (31 those standards
organizations with which Federal
agencies interaction the Mounds that
this would result in extensive and c~ostI,
reporting -acquirements. Other
commenters suggested that the agency
re?crting requirements contained in He
Grcular were, themselves. o berm
burdensome.
Response: We agree. The
requirements to maintain various
listings have been eliminated. Ate
pro~,isians dealing with reports on
agency implementation of the Circular
have been revised to require that reports
be summary. as opposed to detailed. in
nature.
D. Voluntary l~isputc Resolution Seance
Comment: Some cornmenters objected
to our deletion of the requirement that
the Department of Commerce establish a
progr"—. .- "bake available a '~oluntar~r
dispute resolution sewtce to handle
precedtlral complaints brought by
OCR for page 41
F#~1 3—ister ~ Vo1. 47, Eta 211 1 M—day. November 1.1962 / Notices 49497
detected pestles against Thy
ebntsr~ - ice. T - e cs~ent~
~~stm1 mat But ~ ~nism Id
Antic an imperUal r - arm of resolving
Intern dispute - Bout costly
.h, litigation.
Response Whic we tom co pociff=
~ ~e ~ut~tuntive mom of su~ ~
Fund arc ~ " - led ~t He —
"q~t to - publish such ~ Ice
cot ~ appropnate dot for
.
Act.
C~. Aim. M=] Ad. ~ I.
candid" At su~ ~ ~" as t!
~t}on of the m0~sm ~ dewy
penpEcr~ ~ ~e policy Bum dent etch
~ the C~lar. however. - ~ arc
"it" to Federal pertia - doe
development "d we of ohms
~-
e F~ ~i~
Comment Many mmment~
suggested Mat Me promaiom of Tic
C~er dot r - Id "encic' to
coordinate Weir news "d exam ~
Arc Federe] position ~ pnvete For
standards development accedes we"
"nectary "d unwor~ble~nd mat
establishment of ~ m - anism to
achieve these popover would be Idly
"d lead to lengthy delays in ~e
standards development process.
Response: We continue to believe that
agencies should cndesvor to coordinate
their~n~ve Ed present Isle Federal
positions in matte" of perunount
f~pOnance. We ag"e, boweves, Eat the
uiremcst to do so in all sud:
fs~stan~x' is urge "d cord
had to b~esu=atic delay'.
Consequently. we have el~at" the
requirement that Feder~ posido" must
~ dc~elopet in all instances, as well ~e
those prounion wt~ic}s word have
Lund the Sentry of Coin to
appoint ~ ' ~~d ' agency when
agsrements as to the manure of He
Govenment'. position ~ on
Even issue. We candle to capped
~nq representatives to m~:e ~
nssonable effort to present ~ Angle
Federal] position relles~sre of the publle
latent ~ Otter OF "ramo~t
latent is dose standards Into
whesem hao or mo" "es~c:=
pate.
coca
Act Deputy Ins D~or,hor
0~ ~ ~ At
OPTIC. of "Q~'~! Mu - t
Boa ~ :~
_= ~ Cede of ~~—
D Permian Ed
^g~
br Ma ~11~ ~~n1
Alit - Dc_t~
of V~ ~-
~d - Em ~_~ he
~i" tome Bohr ~ ~119 -
- ~D" ~ Ann h
wfUL up ~ ~ y~uc~ of: peyote ~t
Cam ~ to c~e ~ may.
·—s364~ A. a~ bard sepec2
Cow. ~ ~~ to - ~
pond—dal ~ ~ d~iopl~t ~ .
Ate ~ - _.
To knead f ~ imp—
It. -
~' ~ hat - . - ~ ~s
peg ~ the ~ias~tsd" of the
~ly as 't bath to Ding
- ~ prize - ~ Ape ~ - Cloy and
t~ ~
~0~ w" At
Mice loaf_' ABLE
Amp,
~~-~
To ~ ~~ HISxca~dw D_—
~1~ -
D~Q~' ~ U" Vow
_J -
t. Auk ~ Bar Snuff pony
Amok ~ "~e ~ - ~
- - 'h - Any Ida Bins it
No "tablleLce policy to ~ folto_—by
~~—~~ pseudo ~ adopts
IS vo~"ry r~ndard~
~ R - citric his Car ~de,
ORB C~l8, I ~119. Its 1~ 17.
- 111 wbi~ ~ Am.
a Tic - and mar Gad
I involve produce or arm duet
At me~ reliable And Any Rich
Ida ante ~ a~p~ble for the
It's purp<7~. are a~raiteble
private "l - 0 - ~ ~~.
G—Escort pond—Fort ~ ?—
ted activist` - of t - # Store Bill
" ~~ ~ ~ffff ~
Oblige a_ - ' ~ s - Al
adoption of - ~~"
Undo _r - ~61e ~
~pp~p~t., ~ - tee ~e mat ~ ~.
G@V6~' ~ - 61~ in ~ Am.
bp~don of such ~rde al—harden the
alley of rely Moo the privets ~ So
apply Is ~ [or pods "d
Icy ~ ~ - ~ 0~ Cb~ Ho.
~7
`^ppli~`li~. ~ ~ polio
It'd 4~ p~=peum ~ sol - Try
acid - tin u~e "d
~ff~L but ~ to alumnus ~~d a
pedant to trades "d Later - ~1
d~set5 - Mesas.
D finite ~ wed 1~ this CLAIM
- Nancy Rifler rife to
~ - - entry-] mesm say ~~e
Jeper~a~t. h~dependent ammo ark
~~ O~=, ~D", IVY - tom
or~oll" corporation or otb - >
- Element of the F~enl Unrent
audio regulatory Ion or - Act. 1'
sot Ids He Misled" ~ Modal
Fax G:waose~t.
41
b. Whew ~~s ~ paid sct of
Item ~ "qmr~ent' c~cer~d
W=iti" of tan; classification of
a_: ~~—of Heeds:
ecificat~ d ~—A. =~tenals.
Afro. Dwight. ~ ~nti=5:
eeD~~ of Guilty Ed Unity ire
Emus I. produce. Stems.
pow: ~ Titian of fit
Aunt of Be.
~ Kohl .~ ~—tablished
- cay ~ preen Sector bodies and are
mingle for ~ ~ ~ "sson or
Ionized - . pHvete or so~remmental. the
clu~ But ~ Only road to
Pastry In as ~11 as
Now ED bet does not is de
Paris s~ - of Paul amduct.
—dtstional codes of clitics—trite
—Horde of ink Idol ~ or standards
~~t~ ~ bow. such n those contained in
tot United S~t" P~copcis and ube
Het~ F~uLuy. ~ Cam - d ~ 21
U5c USE.
~ Aberrant 'berm Rude
Aims "entry nadirs and
~fi~d~ ~ we31~ F - Sol and Military
s_ "d Edifications.
~ MaJuna2ry s~—Wick ~ private
mar Iffy ~ mudti~tione1
"paizeffon~ as nonprofit
p~doDa Bluing "bastions.
Offal ~ tedmical ~:ietscs.
- Stay or Bum "d rosined test
hbo~ton~t pan. develop. cssabli~h. or
Isle voluntary landaus.
LS=ndard ~e~relopin~ groups a~
admitted - ad. ~ try oar pane pall
~i~si~ of ~luntsty s~n~rd. bodies.
"tsb - - l ~ sum ~~s for ~e prose of
—c1~ aim. or re~ne~n' Standards.
ad which ~ bout by ~ aqua of
Aim.
~ Adoption ~ - u tile "e of the latest
- don of a - angry '~rJ in whole. in
pert. or ~ ref~ for p~cmcnt
purposes "d the imp - Jon of the latest
option of ~ Busboy standard in whole. in
prL or by ref~cr sol re~ulation(~).
A. doe ens ~e S~tsry of
Cat or tat Se~tary'r designee.
a mica. It ~ ~ poll" of the Federal
Grant ~ Its procumbent end
Storer acUnti" to:
~ Fly on volunt~r,~ storm both
Otis "d mt~tionel, whenever
Edible ~ Existent with law and
Oblation p~rsusat to law:
~ DIG - te ~ volts Mondays
hem "teen such p~cipation i. in the
Relic ~temt "d is cow - table with
Acmes' Onions sutured - . pnontice. and
t mourn "d
c C~di - be Agency perdapation In
Artery standers Dies ~ test (1J he
Noel ·~ec21we we is mode of agency
tenure ~ repre~ntetives: and ~21 the
ear—sed ~ such representeti~c~ are
~ the public interest "~ as ~ mining. do
sot afflict with the A and cstshl~~hed
s of ~ 4 - dew
7. Policy Cwdcli~. ~ Inciting the
pi "taUlat~td ~ this Circular, a8encic'
should rise—~ He Pities contribution, of
Ids d~elop=ent and r - Ad ·cti~tics.
OCR for page 42
4~ Feds=! Rapt -
r ~ Vol. 47. No. 2~1 / Monday. November 1. t~2 / b1oti~
, .
Len p~peri, conauctr~i. ,'andBn`s
~eveiopmcnt con incxcse proaucssvity and
esfiuency in industry. expand apportun~ties
for ~ n ten's tionel trade. con - ~e resounds.
and improve health and safety. It also must
be tcc~zed, however. that these BCOYitlC~
t improperly cs~nducs~ can supped free
and fair cornpetit~on. imp - e innovation and
t~nica1 ps`~ exclude cafes and As
=—naive pleura or otherwise adver~iy
effect ~de. commerce. hesith ~ "pity. F
account fossil ~ taicn of the usspect on the
economy. appiicat~le F - erel Ia - a. policica
and national o~je~iY~ including for
example. laws and regulattone r~istsng to
antitrust. nations) Runty. Sail busyness
product safety. environment. t~nolo~cal
development. and conflicts of interact. it
'hould also be noted howeYer. toes the
prov'ssom of his Consular are Intended for
internal management prepares only and are
:so' intended to (2) Bate daisy in the
·6mir.~.—tire process (21 p=Yioe new
Pumas for jackal review. or t33 Q8tC legal
right enforceable against agencies or their
os~er~ The following policy guideline err
provid" to assist and govem i~.Dle~nentation
of the policy cnuncsat~ in pa.-agrapn
a. Defiance on Voluntary S`ondo~~. (I ~
Voiun~ary standards that will Genre acenmes'
purposes and are consistent with applicable
laws and relations should be adopted and
Id by Fedemi agene~es in tine ~nte=sts of
greater economy and ef~cicncy. union they
are spec:ficaily prohibited by law mom doing
sa.
(2) Vciuntary standards should be given
preference over non-mandatory Gas ern~nent
Tandy uncles use of such voluntary
standards would adYc"ei,Y awes
perfonnaner or =~t—~~e co=~titiO~ or
Zinc Aver ~ign~':=nt disadvantaged
A,~nci" responsible for deveiop~ng
en~ent standards should Anew their
exacts standa~ at least every five years
Ad ca~s=1 dose for which an adequate and
appropriate voluntary standard con be
=estitute~
(37 In adopting and using Yoiunter,'
stacdard`; presence should be Even to
those boxy on performance cntena when
such csstena may ~~*onably be used in lieu
of design. matenaL or construction cr:tena.
(at Volunt;., standards adopted by
F - coal agencies should be referenced ailing
with Their datce of i=~sancc and sources of
ava`}aoiiity. in appracnate publications
Baton Been. and Fiats 2n-40u"
dca:m~cnt~ Sums adoption snould take alto
a~t Ose requirements of cop~stg.~t and
at~scr similar ~tnctsOns.
(Gil Agecacs should not be innib''ed. it
within their ssan~tory authonnes. from
developing and using Gavernmer,' standards
u2 the client that voluntary standards bodies
cannot or do nes develop a nced~
acceptaolc staRdard in a timeiv .rashian. .`Sor
should the poling contained in this Gn:uiar
be concord to commit any agent so the we
of a voluntary standard which. after due
c::ru~derat~on. i.. in use opinion. inadequate.
does not meet St8IUtO~ Arena. or ~s
ether - " mapprognate.
b. Par.~'c~potion in Foundry Scandals
Bodies. (it) Pan,=canon by =~wiedgeacie
agency employ - s ~n ~e standard. acn~nt:rs
of voluntary '=~sr~ ~i" a~ .
devetop~ng Bum Amid be setlveiy
enco~ - end p~" ~ Fancy o~ic~ls
when c3~sutent win Is Lions of
pan~pi, ah.
t"} ~ Deploy Who, 81 ~Y8~=t
aspen - . Anticipate ~ standard activities Of
Yalus~ta~ '~ - sew Mice and 'tandem
daveiap~ Dupe should ~ ~ as
~p~sfically au~ a,8 me
xp=senlstlvea
(31 Nancy pa~apat:on use Yci=~ary
stander ~i" and ~t~r~ - retaping
Sups does "ot. of itchy. connote Honey
a~emcat with or endor - Bent of. der:isions
ream - t by wash ~die' Ad g=ups or of
tan~rds approved and published by
voi~tary Storm bodice.
(41 Participation by agency representatives
~ttould ~ si= - i at contnbut~ng to thc
dcvaIapment of Yaluntary standards that will
eliminate the necmuty far development or
maintenance of Operate G~vemment
Stanton
(S] AS - q representatives "r~nng as
members of 'tandard~developu,' groups
Amid participate actively and on a basis of
cquslity win private sector representatives.
En doing x,. agency representatives should
co' leek to dominate such groups. Active
panicipaticn is intended to include ~11
in~roivement in discussions and technical
dchases. reg~-nng of ap~n:ons and. if
seleesed. herring as chairpersons or in over
offal capacities. Agency repre~cntat~ves
may vote. in accordance with Ike procedures
of rise voluntary standards body at each
Stage of standards d~Yelopmerst. Curs.
~pemficaily prohibited from doing so by i~w
or their agencies.
is; He number of indi..d=! ager.~3
panictpants in a Even voluntary standard.
activity should be kept to talc m~ni::2u;n
required for eftec~i~re presentation of the
va3icus program. technical. or other conch
of Federal agencies.
(7] The providing of Ag=ey support to a
voluntary Than acdvity should be
limited to that which is cIseriy in .f'=tserance
al an Anne ~ mission asked r=P0n5itiiitS-
[Yarmally, the tots] Count of Pcdesal support
singed be no greater the that of ail private
seescr pa~mpants in Bat anti - `y except
when it is in the dire asp] pr~omin~t
intent of Tic Pent to develop a
standard or renown thereto and its
deYeiopmm~t appean unlikely in the absent
of BUG} BUD - = ~8 for al ~en=- Nippon.
subject to legal alla budgetary authority. may
LnClU~=
(aj First financial support: c. grants
entraining 3~besship~ and cs~ntrac2=
(b) Administrative support; A... =` al
coast. noting of meetings. and sepia'
functto=:
{c) Tec-hnical support: ..g~ ccocerasi~c
testing for stand evai~ation and
,.nic;?~:~on of agency parsonne1 in He
activities of ~tandards~eveioping groups
and
(d] JOLTS planning with voluntary standards
bodies to facilitate ~ coordinated eHort In
ident~f~nng 2nd developing needed Wanda.
(83 Participat{on by awes: :~ps~sentatives
in the polic=.aking process of Yolunsa~y
·t~nda.~s ~d;~= in a~o~=s" way the
42
ply at t2~ -. as c~~eDU~~8~—
pall ~ sty ~ as Elena
pronto - ~~ Ids for
pi nil ~ a~
.~ a~ t=#~~ tan~iop~n'
8~-
nongove~ :=t~ of ~ ~i~
however. at rent - ~2 - d
Ail. from ~iatsn~ki" ic~oiv¢~' In
the m~ day- EMU pat Ot llt
trim a. "i~ ~ ~ - 0~ a~
employed Tint of Gaff "~ -
and ac~in~trat~ve polity.
(at Big Cinder ~ At pronce—done
canceling the ia2~ opcra~g ply
that may be appli=dic to Yol~"ry
Tan bodies ~usc of the
xia~ionan~ps to a - Are Unix dais Cis=~r.
,\gene.i" shoddy ho - ~es. carrf~ly A: - ides
what laws or off by apply ~ papillar
instance ~~ e of Ewe =la~an~hipe. For
ex~mpic to—e retauanships may invoice Tic
Fedeni Anti—or Clatter Act. as
amended (S 1J'5.C App. It or a pro~nsion of
an aurora statute far ~ ply agency.
Agencies are Bet able to detcrminc what
laws and Alicia ·—uld gcvcm partner
rclatiosunips a~ to Anna the cxten2 tO
whim competition may bc askance and
cost~e~ective~s i~maxd. Quinine
relating to anti-~t "npiications of ~~h
tcIationanips should be al - :D the
Atton2~r G~nc=L
R~spons`diiit~cs. a. The Sell win:
tat) Cite And foster executive orb
impiemcnt~tion of ~e policy ~ para~pl
of this Career. ~;:d ~y provide
a—~n~strative gu~d~# tO assut agenac~ in
unpicment:ng Graph fib. (S} of this
Circle.,
(21 £~lub an ssm=~en~r c~tatrv.
mechanism to adding the &~=t;try and
agency beam us implc~c~ting the policy
contained Chin. But moaners snail
p=`nde for partimpebon by ~ affected
agencm and cn~ that Weir knows are
considers: and .
t3} Re fort to the t=# of h{anagement AL
Budget con~x~ ~picmcntanon of this
Ceil.
b. Be neat of age~c.es c:~ocesmed wish
Wanda win:
11) ~m;'2sr:ent Me policy id paragraph ~ of
this Circular in 2~rdan# with He colicky
g~sdeiines in pars graph, wow 1= days of
;seuanca:
(2) Establish p:ocedurm to Adds that
arenas xpres-otatives postdating in
voluntary standards bodied and standards
developing groups w6L to the extent possible
ascertain the views of Me agony on Otto
of paramount interims and Agile as a
rnin~m~ express theses Hat are Dot
Lneor.sistent or in Conklin with es:aolisoed
agents News:
(31 £ndesYor when To or more avenues
par1t~c:pate in a given voluntary Lands
body o" ~tan~d~d~Yeloping glum. to
coordinate their views on 3:atters of
paramount importance so as to prmenL
whenever feasible. ~ single unified position
(4) Cooperate with tile Scrotal ~
carrying out his =spansib~l~6es under Isis
Circular: and
OCR for page 43
F - en' Register ~ Vol. 47. No. 2~: / Monday. Ncven~ I. :~382 J .~Joti~ 4~
-
IS1 (:onsult w~th the Secrete - . as
neceses~. In the deve{opmcnt and '.su;`nce
of. ~ntemal agency precede and guidance
impletnentsn' this Civet. . - up. In
respon" lo thc ~4ucst of It's S~te~y,
gummier Arts an the status of ''en`;y
interaction with voluntary ~tanderds ~es.
9. Reposing R.qwremen" ~ yeen
from the dbte of issuance of this Circular. and
each thin year themeftrt. ~e S~t~ mU
submit t: the Office of Fragment and
Budget ~ brief unwary repon ~ ~e status
of agency u~tomes~on with volunts~
tan~rds Dim ~ ~ miff ~ ram
Bill indude the tollomn' u..fonz - lion.
a. ~e natwe and content of awns
pen~apetion :n the development "d
utIii~n~ of Al - Item Tandy and
b. An evaluation of the effec~tivenese of the
policy promulgated in this Circular and
mcom~t~ons of chew.
IQ Policy Re~r'ew. Ant policy contend is'
tb~s t:ircu1~r Shall be reviewed for
Electives - s by ~e Office of!^ns'ement
and At them years from the date of
itch.
11. l~quin~. For ~ntor...atian concerning
Flu Ci~r. contact the Office of
Management and Budget. Office of Pcdeml
P=cu~ment Polic,. telephone 202J3~.
David A. Stockman.
D`~ctcr.
Dot of lusuce
Ant trust Oil soon
Office of the Ass~s~nt Attorney Cenc.=l
Tune as. 19=
Mr. Donald E Sowie.
Ad.rssnis~tor.for F=feroJ ~%c:~rement
Away
Office of h(anagement and Budget
Washington. O.C 20503
Dest Fir. Sowie I am writing to express the
views of the Department of lust~cc on
competition policy issues rat - by the
Cycled 0 - Circler .~. A-t19. Federal
Paniapation In the l~evelopment and Use of
Valw~tary Standards published for comment
~ the Federal R - tar on April 2§. 1982 (47
Fed Reg. 16 ~9~.
In on commend on previous draft. of the
Circular. dated Dceember ~ 1978 and tune
13. 19?& we have supported a policy of
federal adoption of privately developed
standards when appropmate. Enough
participation in. and support for. private
standards malting activities. agencies may
benefit greatly from pirate expertise and
will avoid the wasteful duplication of cost
and effort unsolved in developing their own
in-house standards. Tic Department of
Justice is not opposed to the policy
announced in Remend ORB Cire~lar A-~19.
which would eliminate the rigid due
process precondition to federal panic~pation
In private ssanda~ activities. Such a
precondition is overly restnctive. since as a
practical matter fecem! agencies Ail often
be required to adopt the standards developed
rrgardiess of federal participation in their
dcYelopmenL Auk in our view. the better
solution is to pcmcspate in standards setting
bodies and work within them to assure that
appropnate pn~durm a" adopted.
One t~pertment bell - - that focal
per~~cspense should encoded the adoption of
p~u~ to foster ache" to ."nderd
"Stan' activity a" tr;.nspe~c~r ~ such
act Such precedes f~it~te Me
development of 'tenderde ac~ptshle to the
enstre affcet" industry as Cecil as to
co~ In p~tI~ar. ",t~cc and
opportunity for comment help Inure shot
Tandy will ~ bawd on adequate
infon~tion ~ '. then utility a~
con~q~nca~ Threader. it is - ~;.r
important that p~fonnuu:e Intend be UYcn
~ protninent. peeps p - ..,n~inant. place in
any ~tanda~ac2~v.ty. F - ~1 agency
repr~ntativ - . therefore. should advocate.
as strongly as possible. procedure deigned
to ase~ that ~ broad range of info~'on is
foliated. and that performance casens are
central element. Of the resulting standards.
In "diction to the practical adventag" of
open stsederds proceedings. such "forwards
would mitigate the ~~st;'ntial
anticompetitive potential inherent in p~,iY8t~
standards Cups. We importance of assuring
adequate conside"ticn of compe!tision in the
work of pnvate notanda Idles was noted
r~ntl~r by the Supseme Court in American
Society o{Mech~nical Engineers. Inn v.
Hydroleve~ Coop. The case involved ;~
pmduct etant~rd which had been adopted in
states and all best one of He C~nad'an
provinces. She Count oose~ed that
organizations c"ating suck standards could
be -oft with oppon='sies tor
anticompetitive activity Federal agencies
aught to strongly encourage those private
oups.to ensure consideration of all relevant
viewpoints a" interests Including those of
consumers. and potential or emoting Inductor
panic2oants.
This country ~ international obligations
and policy. as expressed in tise Standards
Code negotiated during the Tokyo Round of
ttsc hSult~lateml Trade Negotiations. see the
Agreement on Technical Same" to Trade.
codified at 19 U.S.CA. 2531 et seq. lt9~1.
provide another important Reagan for federal
agency participants to encourage the
adoption of open procedures for private
standards groups. This Code. approved by
Congrces as well as by our leading triadic
parmem. seeks to prevent the cation of
product standards which discriminate against
import competition. It r~u~s central
governmental bodies to prav;te notice and
opportunity to comment in their own
standards Maytag activities. and encourages
~ov~nfnents to talcs reasonable measures to
ensure that non~oven~mcnta1 bodies provide
similar protection. Where the federal
go~re~nment is in fact involved in the private
group. the obligations of the Standards Cddc
would appear even stronger. Open
procedures, speesficallv adequate notice and
opportunity to comment. would further the
objectives of the Standards Code. and would
s~sbstansia}ly reduce the possibility that
disenm~natory. anticompetit',re standards
wit! be de`~Iop~
The Circular would encourage use of
voluntary Standards for regulatory and other
purposes. Although we applaud this
expansion of the Mope of the Circular. we
belicYe that broadened federal ux of
privately, developed stands should be
43
arm- - panted with Ad t - All s - Knees
of the pnc'~l and c~pesst'vc advance -
o! industry - ~ - ~ to pave" '"adorn
bodies. Such occur ~ an Marc so teder;~i
peticipet~on ~ private '=~;tde activities.
let It I. ~l" f - at - ~an" when
f~nl A. without p~iapatioc. in the
~~, add Wards far
p'_' ~ ~t~ we.
As we ·nLcsted ~ our previous con
Pyrite 8~lYlt' i. - t ~ Vat - of
Lemma p~t~apat~on ar ;Ipp~ral.
~h~cided from the actitn~t laws. F~rel
agency p;~nicipation in ~ mends may.
however. ~, imply federal' apply of the
process and of the multi s"~r~ "d
perhaps lead private pemapents to Come
tas 's their own antitrust scrutiny. To Vital
any film impr - alone f~] Band
rep=—ntat~ves should u~fo~ pn~st-
penic~pacts that .'~cral par~iapetion does
Dot remove ant`~t concans. as well as
advocate that appro - ate pr~durm be
employed in Be stands procaine.
Sincerely yours.
Ronald C;. Carr.
Acting Assistant Attorney Gcner~l. Ar~titn~st
O`vision.
11;' ~ ~~'fiL" to-D~ ms ·~'
_ Cot 31_~
sectJames—o EM
C - MOON
1 - L - . t27~: ·12~1
0~1y Tas Few ll~# hi Inn;
Flh9 of ~ A_
October 19. 19eZ
Notice is hereby given that Daily Tax
Free Income Fund. Ince 100 Pam
Avenue. New Yorlc. N.Y. ICON (the
"Applicant' I. stunt Eden He
Investment Company Act of ~0
("Act'] as an open ent. diversified.
management in~rest=ant company. filed
an application on August 6. ~~ and an
amendment thereto on October 18. 198Z
requesting an order of the Commissiam
pursuant to Section qc3 of the Act.
exempting Applicant and any additional
separate portfolios that may be
established by Applicant in the futile=,
from the pronouns of Section 2a of
the Act and Rules 2a ~ and ~-1 uncles
the Act to the extent necessary to permit
Applicant to value its assets using the
amortized cost method of valuation. All
interested persons are refeed to the
application on file with the Commission
for a statement of the representations
contained therein, which am
summarized below.
Applicant states that it was organized
as ~ corporation under the laws o'
Maryland on luly 2~ ~~ and Eat it
registered under the Act on luly ~ 1 - Z
Although it will have initially only one
investment portfolio the Baard of
OCR for page 44
Representative terms from entire chapter:
voluntary standard
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